Ford Debt To Be Removed From Lehman Bond Index

Bloomberg reports:

Ford Motor Co., the second-biggest U.S. automaker, was cut to junk by Fitch Ratings amid falling sales, forcing the bonds of its finance unit out of Lehman Brothers Holdings Inc.'s investment-grade index, the most widely followed among investors.

The automaker that created the Model T and the Mustang muscle car had its senior unsecured debt ratings on $18.3 billion in debt lowered one level to BB+ from BBB-, Fitch said in a statement today. Ford Motor Credit Co., the automaker's lending affiliate with $123.5 billion in debt, was also cut to BB+.

We will be watching to see how many basis points above Treasuries Ford debt is going to be trading in the near future.Could Fannie Mae's debt someday be junk?